FX.co ★ Elliott wave analysis of EUR/JPY for February 12, 2018

Wave summary:

We expected EUR/JPY to develop into an expanded flat, but this was proven wrong and instead the wave c of a simple zig-zag correction moved lower to support at 132.19 before turning higher in what is expected to be an x-wave. If this is correct then resistance at 135.85 should be able to cap the upside for the next turn lower towards 131.20 on the way to the ideal target for wave (E) at 123.43.

R3: 135.31

R2: 134.58

R1: 134.19

Pivot: 133.00

S1: 132.61

S2: 132.18

S3: 132.00

Trading recommendation:

Our stop at 132.85 was hit for a small loss of 65 pips. We will wait and sell EUR at 135.00.